HOUSE OF REPRESENTATIVES
H.B. NO.
1727
THIRTY-THIRD LEGISLATURE, 2026
H.D. 1
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO THE RENTAL HOUSING REVOLVING FUND.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new section to part III, subpart J, to be appropriately designated and to read as follows:
"[Underlined: §201H- ] [Underlined: Transfer of moneys; subaccounts.] [Underlined: Notwithstanding any law to the contrary, the corporation, with the approval of the director of finance, may transfer moneys between the rental housing revolving fund and any subaccount established under this part, and between subaccounts established under this chapter, without further legislative authorization, for purposes consistent with this part. The corporation may also return unexpended or uncommitted funds from any subaccount established under this part to the rental housing revolving fund, to be used for any lawful purpose of the fund.]"[Underlined: ]
SECTION 2. Section 201H-202, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:
"(e) Except as provided in subsection (f), moneys available in the fund shall be used for the purpose of providing, in whole or in part, loans for rental housing projects demonstrating project readiness, efficiency, and feasibility acceptable to the corporation in the following order of priority:
(1) Projects or units in projects that are allocated low-income housing credits pursuant to the state housing credit ceiling under section 42(h) of the Internal Revenue Code of 1986, as amended, or projects or units in projects that are funded by programs of the United States Department of Housing and Urban Development and United States Department of Agriculture Rural Development wherein:
(A) At least fifty per cent of the available units are for persons and families with incomes at or below eighty per cent of the [Underlined: area] median [[Struck through: family]] income of which at least five per cent of the available units are for persons and families with incomes at or below thirty per cent of the [Underlined: area] median [[Struck through: family]] income; and
(B) The remaining units are for persons and families with incomes at or below one hundred per cent of the [Underlined: area] median [[Struck through: family]] income;
provided that the corporation may establish rules to ensure full occupancy of fund projects; provided further that for projects that were awarded low-income housing credits pursuant to this paragraph, priority shall be given to projects with a perpetual affordability commitment. For purposes of this paragraph, "perpetual" means the useful life of the project; and
(2) Mixed-income rental projects or units in a mixed-income rental project for [[Struck through: persons and families]] [Underlined: households at a range of income levels, but primarily for households] with incomes at or below one hundred forty per cent of the [Underlined: area] median [[Struck through: family]] income."[Underlined: ]
SECTION 3. Act 159, Session Laws of Hawaii 2025, is amended by amending section 8 to read as follows:
"SECTION 8. This Act shall take effect upon its approval[[Struck through: ; provided that sections 2 and 3 of this Act shall be repealed on June 30, 2030, and sections 201H-202 and 201H-204, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day prior to the effective date of this Act]]."
SECTION 4. The director of finance is authorized to transfer moneys from the rental housing revolving fund to the mixed-income subaccount of the rental housing revolving fund in an amount not to exceed $100,000,000 for fiscal year 2026-2027.
SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the mixed-income subaccount of the rental housing revolving fund established under section 201H-202(f), Hawaii Revised Statutes.
SECTION 6. There is appropriated out of the mixed-income subaccount of the rental housing revolving fund established under section 201H-202(f), Hawaii Revised Statutes, the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 for the purposes of the subaccount.
The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on July 1, 3000.
Report Title:
HHFDC; Rental Housing Revolving Fund; Mixed-Income Subaccount; Transfer of Moneys; Mixed-Income Rental Projects; Appropriation
Description:
Specifies the conditions upon which the Hawaii Housing Finance and Development Corporation may transfer moneys from within the Rental Housing Revolving Fund to a subaccount and between subaccounts of the fund. Clarifies what constitutes a mixed-income rental project for purposes of loans funded through the Mixed-Income Subaccount. Repeals the sunset date for the Mixed-Income Subaccount. Authorizes the Director of Finance to deposit rental housing revolving funds into, and appropriates funds into and out of, the Mixed-Income Subaccount. Effective 7/1/3000. (HD1)
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